Inside INdiana Business is reporting a bill designed to give more financial flexibility to schools throughout the state has passed the Indiana House. House Bill 1167, authored by State Representative Tony Cook (R-32) would allow schools to transfer money from different funds to cover any necessary costs.
Cook says schools currently have their funds separated into three categories:
- Education – used for all expenditures related to student instruction and learning
- Operations – used for maintenance of buildings, utilities, bus repairs and other necessary operations
- Rainy Day – serves as a savings and can be used for one-time budget needs such as staffing expenditures
HB 1167 would allow schools to move money from their rainy day fund to their operations as needed. They would also be able to transfer unused money at the end of the year from the operations fund to be used for educational staffing expenses such as teacher bonuses and stipends.
“As a former educator, I understand that school funding is a complicated issue,” Cook said Monday on the House floor. “Providing school corporations flexibly to address their unique funding needs can help schools be more efficient and better utilize money for education.”
The bill now moves to the Indiana Senate for further consideration.